2024 Investing - Recapping Goals

Reviewing my individual strategy for my Tax-Free Savings Account in relation to the objectives established at the beginning of the 2024 year.

If you follow me on the Blossom app, you are likely aware of my post detailing my strategy for 2024 within my Tax-Free Savings Account (TFSA). It is now an opportune time to revisit this matter and reflect on my actions.

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Here is a high-level summary the established at the beginning of the year and the corresponding outcomes.

Investment Goal: Invest $7,000 new contribution room and $3,000 residual room by year-end.

Outcome: It was an interesting year. I mostly utilized the $7,000 contribution room in the first half of the year, but opted not to invest the residual portion of cash. Holding cash can be strategic, especially when markets rise exuberantly on AI revolution expectations. Given the current market conditions, I prefer maintaining a cash position and reallocating when I believe it's the right time.

Positions: Focus on main portfolio players with strong financials and cash flows, shifting from sector-based investments to specific equities.

Timing: Allocate funds throughout the year during pullbacks or corrections, either in lump-sum or periodically.

Outcome: At the beginning of the year, I maintained my focus on sector-based investments to ensure my targeted sector allocation was met. As markets continued to climb and reached new all-time highs, I shifted my attention to specific equities. This allowed me to seek more conservative, value opportunities, especially since many of my holdings had surpassed my margin of safety (MOS).

Stocks to Sell:

• AQN (waiting on interest rate cuts and management actions)

• One of the REITs: CAR-UN or CRT-UN (reducing holdings from four to three)

Outcome: AQN remains a lost cause for investors. I sold out earlier in the year as it was a very small position in my portfolio, originally invested in due to novice investing and hype from others. It's crucial to do your own research. I also reduced my REIT exposure by selling CRT-UN, choosing to keep CAR-UN for its higher growth potential, despite CRT-UN being more stable. Given my long-term investing timeline, I made this decision. Lastly, I sold BCE, realizing that having two telecoms didn't provide the diversification I expected. Instead, focusing on the best in the sector is more beneficial. We grow and we learn.

Stocks to Buy:

• BN (despite already reaching 20% financial sector allocation target, potential for big returns)

Outcome: I was late to the party but finally committed in the latter half of the year. To fund this investment, I rotated a majority of my holdings out of TD (as discussed in an earlier publication) and into BN. Although I am still holding cash from this sale, I plan to reallocate into BN once it experiences a healthy pullback.

Stock Wishlist:

• US equities only if undervalued (e.g., AAPL, MSFT, V)

• Waiting for better CDN to USD exchange rate for further US investments

Outcome: I was thrilled to initiate a significant position in one of my favourite stocks, Visa (V). This was my largest investment in 2024, as it was trading well below its historic P/E valuation and was impacted by a potential DoJ lawsuit, which typically doesn’t amount to much. Other investments included Stella-Jones (SJ), Wal-Mart (WMT), and ETFs like ZGLD, VIU, and VEE, to gain exposure to the rising gold cycle and various international and emerging markets.

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